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Million Dollar Homes For Sale in Richmond VA

April 14, 2013 By Rick Jarvis

No matter where you go in the US, one million dollars is a measurement by which salaries and homes are compared.

[ listings in excess of $1MM are below ]

Each market in the US (and the world) has their own inputs that drive values and specifically, what drives values to $1,000,000.  For some it is proximity, for some it is history and for some it is space.

Regardless of the reason that a home can justify an asking price in excess of $1MM, in Richmond and surrounding areas, the $1MM threshold is not an easy one to crack.

What makes you worth 7 (or more) digits in Richmond?

The first and most important factor in getting to the $1MM mark is involvement with water….specifically, the James River.  The condos on the upper floors of the Vistas, Rocketts Landing and the homes in both the City and Henrico, Goochland and Chesterfield that have expansive River views, can command that price.  While I am sure that some of the properties that front smaller lakes or other smaller rivers or creeks (South Anna) can ask a premium, having property along the James drives a large portion of value.

History also plays a role.  Monument Avenue, Seminary Avenue and Cary Street Road all have enough historic currency to command the $1MM+ number.  Richmond’s powerful (and oft divisive) history is highly valued by many.  Additionally, those who own some of Richmond’s most iconic properties along these avenues feel a responsibility to steward these properties from one generation to the next.

While size matters, simply being big does not necessarily mean expensive.  While there are certainly homes whose scale (and thus, cost) generates a price over the $1MM mark, often times, size without another element (river, history, estate setting) will not necessarily mean ‘a mil’ (or more) is the value.

Lastly, there is a geographic component to value.  There are more areas in Henrico that can command the price than Chesterfield.  There are more areas in Goochland than in Hanover and Powhatan and so on.  Owning a million dollar home in Chesterfield is likely only in very specific  neighborhoods.  Henrico offers more spots where 7 digit home prices are justified.

Overall, Richmond is not really a $1MM city quite yet.

What does a million dollars buy you in (and around) Richmond?


Understanding Condo Dues

April 14, 2013 By Rick Jarvis

ginter-condo-256x144_optSomeone should write a condo app. The app wouldn’t sell anything or make sounds or track anything. It would simply be an app that brokers could point their clients to once the litany of questions about condo dues comes up.

And they will come up.

While some of the questions I get, pretty much on a daily basis, are quite astute and on point, many indicate a complete lack of understanding of what “dues” really are. And that isn’t an easy concept to explain. A sentence or two usually won’t do the job. It can take not one but two agents—the purchasing and sales agents—to get a buyer comfortable with the idea of dues.

Condos are still relatively new to Richmond. In Downtown Richmond seven years ago, condos didn’t really exist. The rapid rise and growth of condos in the city created a steep learning curve for both the Realtor community as well as the buyers. Many agents went out of their way to understand the intricacies of condo ownership. And they’re better for it. But more than a few agents punted, and this lack of knowledge has given rise to too many buying agents feeding their clients bad information.

newIMG_7643
The Marshall Street Bakery has a dues structure lower than the Emrick Flats despite a largely similar profile. What is the difference?

I’ve taken it upon myself to give back to our fine real estate community and once and for all explain condo dues.

For starters, this is not a true statement – SINGLE FAMILY HOMES DO NOT HAVE DUES. If you are a buyer and your agent tells you this, show them the door. They don’t understand dues.  Let me repeat, if your agent tells you that single family homes do not have dues, then fire them.

Single-family houses have dues….you just aren’t made aware of them in the same way as you would be with a condo.

Before we go any further, let’s apply some numbers so that we know what we are talking about.

The majority of the condos in Richmond have a dues structure of roughly $2.50 – 3.50 per square foot per year of dues expense.  Let’s use an example: a 1,000 square foot condo with a parking garage and an elevator will typically generate $200-300 per month in dues, or somewhere in the neighborhood of $3,000 a year.

Do you get a water or sewer bill at your home? Well, in a condo, water and sewer is typically a part of your dues ($200-300 per year is about right in most places).

How about hazard insurance? A group of condos must be insured by the association. Therefore, the vast majority of your insurance bill is included in your dues (about $500-700 per year).

So before you get worked up about high condo fees, think about what normal operating expenditures are included in them, and what you won’t be paying in the normal course of business.

The second (and most misunderstood) component of dues is the maintenance and reserve budget.

osrg_vcu_poster_final
The condo options within the ‘VCU Bubble’ all offer different dues structures. Make sure to compare services as part of your analysis of the overall cost of ownership.

Do you have a roof on your single-family home? I’m going to go out on a limb and say yes. What does that cost to replace? A lot. When will it happen? When you can least afford it. Are you putting any money away for that replacement? Probably not, right?

The condo people are.

How about those exterior walls you see every day? What does it cost to keep them painted or cleaned? What does it cost to replace the rotten siding or wood trim? Are you putting money away for this repair?

The condo people are.

Each month, the condo association stuffs some portion of the dues go into an account for future repairs and maintenance. In lieu of waiting for the repair to be needed and then asking for each person to put up their pro-rata share, the money is available. If the repair is not needed, then the money is not spent. It is sitting in an account, ready when needed.

But there’s more. Who mows the lawn? Who cleans your pool? Who cleans your gutters? Ahh, you’re starting to understand condo fees, right?

When you think about it, putting $2,000 a year towards both current AND future repairs seems to make a lot of sense, right?  When you’re paying 100 percent of the repair and maintenance expense for your house, and you encounter some big-ticket items, your checkbook will feel that pain. Look at the last year. Better yet, look back five years at what you spent on maintenance. My bet is that living in a condo is actually cheaper than living in a single-family home when the entire cost of ownership it truly examined.

Here’s the takeaway—all improved properties (single-family, commercial, apartment, condominiums) have “dues” by one name or another. The question is whether or not they are paid collectively in advance (as they are in condos) or in a lump sum in arrears (as they are on a single-family home). To say that one property type has dues and one does not is foolish, especially if you’re using dues as a deciding factor in your purchase decision. You have to dig deep to make it an apples-to-apples equation.

Lay it all out on a spreadsheet and review the condo association’s budget (which by law you have the right to do) and then make your decision. There are a lot of factors you should consider when thinking about condo living. But don’t let condo dues have too much influence, at least without truly understanding exactly how they measure up to single-family living.

Is Your Realtor a ‘Cycle-ist’?

April 6, 2013 By Rick Jarvis

Cyclist riding a bike

A quick note –– the original date of this article is April 6, 2013.

In the years that followed the 2008 crash, no one really seemed to care about the fact that we had lived from the bottom to the top to the bottom again.

Well as we head into the 2020 market, impacted oh-so-angrily by a virus named for a beer, it is all happening again.

Being an agent when times are good isn’t really that hard –– you just call a lot of people and let the market do its work. Well now, that has all changed again.

We are at the precipice of another cycle, and we are now multiple-time cyclists.

Enjoy the original article –– the message rings true again.


From April of 2013 …

I am “cycle-ist.”

I don’t ride bikes nor motorcycles. I don’t wear yellow jerseys and I don’t wear those hats with the brims turned up –– and I don’t wear a lot of spandex (and that is a GOOD thing.)

But I am a “cycle-ist.”

Huh?

I am a “cycle-ist” because I have lived through an entire 20+ year real estate cycle and I have done it while in the real estate industry. 

Beginning in 1993 when I was first licensed, to 2008, when we opened One South, to today, at 40+ agents strong, we have survived from the heels of the 1987 crash to the beginning of the 2013 recovery.

cycle
The cycle that began on the heels of the 1987 crash ended when the market bottomed sometime in the later part of 2010-mid 2011. 2013 will turn out to be the year when most will look back and point to actual recovery.
Home Prices Continue Rising | Builder Magazine
NOTE: I added this chart to show how far the market rose from 2013 to 2020 in case you were wondering. Expect to see some impact in the latter half of 2020.

Why does this matter?

While predictive models will tell you what to expect based on a set of inputs, experience will tell you when the inputs to those models are incorrect. No one anticipated 30% decreases in value from 2008 to 2012, but it happened. Understanding why it did is the most important lesson to learn from it.

At the end of the day, having lived through a cycle means a far better understanding of the many levels of risk and how to mitigate them. While being in an ownership position always carries some form of risk, understanding the level of each (as well as the new forms that we discovered from 2008-11) is paramount.

When we look back at this period in American financial history, we will see more real estate fortunes made (or at least more equity gained) than at any time in our history.

  • Those that have chosen to see ONLY risk will have missed an opportunity. 
  • Those that seek to understand the risks that they take, will thrive. 
  • Those that seek others who can offer pointed observations about the risks that drove us into one of the worst financial periods in our history, will thrive to a higher level.

Seek out the cyclists. They have seen a thing or two.

Ginter Park and Ginter Place

March 28, 2013 By Rick Jarvis

ginter condo_optI really have become a fan of Ginter Park.

In April of 2012, we were asked to take over the lead sales of the Ginter Place project (the old Richmond Memorial Hospital Complex) along Westwood Avenue.  The hospital complex abuts both the Laburnum House and the Baptist Theological Seminary Campus at the corner of Westwood Avenue and Brook Road.  The Union Theological Seminary is also within sight of the east side of the condo tower which really helps frame the views…especially from the upper floors.

GP logo{ Click Here for Condos For Sale at Ginter Place }

In 2003 (or so), a group of investors purchased the entire site when Richmond Memorial moved to Midlothian.  It was a large undertaking, to say the least.

GP Overhead

After a rather contentious period of negotiations with the Ginter Park Neighborhood Association, the first phase of the project, the condominiums in the old hospital complex, went live in early 2008.  As history has shown, 2008 was not kind to ANY housing project, much less an upscale condo project targeting downsizing buyers.  Needless to say, it fell flat.  While the reasons are many, it is safe to assume that even the best conceived and executed projects brought to market in 2008 would have experienced similar outcomes.

ginter street scape
Ginter Park’s pedestrian-friendly nature means a casual stroll may not lead to anywhere in particular but enjoyment along the way.

Fast forward to 2013 and the environment has changed.  Lending, sales, inventory and overall public perception of the market has turned from thoroughly negative to fairly positive and the real strengths of both the project and the neighborhood are emerging.  The condos are large and well appointed with an excess of both features and finishes in excess of all competitive products.

They have begun to sell quite well.

I find it interesting that while Ginter Place has begun to experience the sales success that it should have experienced had 2008-2012 not occurred, it is still under most of the Realtor’s (and their client’s) radar.  I think that Ginter Park, and to much the same extent, Bellevue, are still largely misunderstood by much of Richmond…and that is truly unfortunate.  Despite some of the most powerful architecture of the era and with a diversity in design unseen in Richmond, the homes of Ginter Park and Bellevue trade at a discount to many other comparable neighborhoods.  While the reasons for the value bias are as diverse as the design of the homes there, probably the biggest reason is that the large majority of the market does not truly understand the area.  The many neighborhoods that comprise North Richmond are misunderstood mostly because the subtleties that drive values are not apparent to those not engaged in figuring them out.

{ Click Here for Homes for Sale in Ginter Park and Bellevue }

ginter park
The homes along Seminary Avenue rival those along any stretch in Richmond.

Without a doubt, my favorite part of Ginter Park is the architecture.  While the interior layouts of the homes can be a little antiquated with smaller closets and less ‘open concept,’ the exterior presence of the homes in Ginter Park are as striking as any in Richmond.  Despite a relatively tight time period for construction, the diversity of architecture is stunning.  Cottages, Bungalows, ‘Four Squares,’ Arts and Crafts and Tudors with brick, stucco and different sidings all can be found.  Even the relatively benign colonial designs are more engaging due to side porches and larger, manicured yards.  For those that wish to see some of Richmond’s finest homes, a leisurely drive up Seminary Avenue will result in some jaw-dropping residential design unrivaled in the Metro.

Ginter Park deserves to be understood better than it currently is and we hope that the brokerage community invests the time required to truly understand the power of the neighborhood.

 

 

What Does A Buyer’s Agent Do?

March 22, 2013 By Rick Jarvis

representA buyer’s agent works for YOU when you buy a home.

When we say ‘works for YOU‘ we mean that it is YOUR interests that are the primary focus. While all agents are supposed to be on their best behavior when it comes to no lying, cheating or stealing, the difference between a BUYER’S Agent and a SELLER’S Agent is whose pocketbook is being looked after.

A BUYER’S Agent’s sworn goal is to help you pay as little for a home as possible. A SELLER’S Agent is trying to get you to pay as much for the home as possible (to the benefit of the seller, obviously.)

But how can this be so? A house is worth what a house is worth, correct?

It really depends.

The comparable sales that are shown to buyers and/or interpreted for them can be made to illustrate vastly different values. Comparing a home to others which have varying degrees of applicability can yield radically different (yet TOTALLY believable) results and it is the job of your advocate to understand this.

I would rather save the commission…

Doesn’t really work that way.  The listing agreement is between the seller and their agent, not between you and the agent.  Odds are, you are getting no representation and the agent is getting the entire commission.  They would LOVE to help you, obviously.

I don’t want to tie myself to any one agent…

Then in essence you are tying yourself to every other agent you meet.  If the LISTING Agent thinks you are not working with a BUYER’S Agent, then you will get their full force sales pitch on both why their home is best and why you should use them as the agent.  Once they know you have chosen a BUYER’S Agent, the dynamic changes as they know they are dealing with an informed consumer that has an advocate.  Facts are forthcoming and the constant sales pitch ends.

Don’t Trulia and Zillow show sales?

Trulia and Zillow can be described as ‘helpful’ at best and ‘wrong’ at worst. In effect, a computer located in San Francisco and/or Seattle is telling you the value of property in Richmond.

Would I use them IN my analysis?  Sure.
Would I use them AS my analysis?  No.

By their own admission, only 90% of the value estimates fall with 10% of the actual value.  Stated differently, only about 90% of the time, these sites can tell you that a $400,000 home is worth between $360,000 and $440,000…and 10% of the time, they cannot even get that close.  And it sure would be nice if they told you which ones were the really bad estimates…

But I get an appraisal, right?

Sure, but the appraiser knows the sales price going in and in most cases, the goal is simply to justify the sales price to the lender. If the appraiser had no idea as to the contract price prior to the appraisal, it would have more value and thanks to the Dodd-Frank legislation, lenders have little control over who is doing the appraisal.  Do you really think it is a good practice to have a Goochland Appraiser valuing properties in Church Hill?  It happens all of the time.

So you are telling me that Realtors determine price?

Far from it.

Realtors, much in the same way as appraisers, look to the comparable sales to help EVALUATE the price of a potential home, but ultimately, the market sets the price and it is the agents job to help you interpret all of the data.  Where an appraiser is trying to justify the value of a home at a specific point in time, they have no obligation to communicate to you the factors at work that can impact values in the future.  Understand that your agent has seen the same inventory and seen your reaction to it.  They understand your motivations (or at least they should) and they know your goals.  Most importantly, a good agent will help you to understand the things that drive value in your marketplace.

So how do we find a good Buyer’s Agent?

The key to understanding a GOOD Buyer’s Agent is to interview them. Ask about their background and how they help interpret values. Find out how they see the world and if their style matches yours.

  • Can they compute an absorption rate?
  • Can they band $/SF?
  • Do they recognize different builder’s signature styles?
  • Do they understand development momentum?
  • Do they know inventory levels?
  • Can they communicate the underlying market dynamics?

Invest a few minutes in an interview and see just how capable your agent is. Compare them to others and see if the advocate you have is the right one for you.

 

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I am Kendall C. Kendall, Client Care Coordinator for the team. I am a licensed Realtor and it is my job to answer questions and schedule showings for the properties shown on our sites. Here's our call policy.

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Working With Buyers

I am Sarah Jarvis, Broker at One South and I work with our buyers. I bring 20+ years of experience to our Buyers Advocacy program and take great pride in helping our clients understand the RVA marketplace.

sarah@richmondrelocation.net

From the Blog

The Evolution of a Buyer

The word 'evolution' is generally defined by a sense of growth or improvement over time. Living things evolve, as do more theoretical things, such as ideas, processes, societies and technology. Evolution surrounds us. Applied to real estate, the concept of evolution is most apparent in the stages …

[Read More...] about The Evolution of a Buyer

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